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ICICI Prudential Mutual Fund has launched ICICI Prudential ESG Fund, an open-ended fairness scheme which inspires sustainable investing, by investing in corporations which observe Environmental, Social and Governance (ESG) theme. Companies will probably be assigned a composite ESG rating primarily based on the components talked about and publicity will probably be taken in corporations by assessing them on the talked about components.
According to the fund home, ICICI Prudential ESG Fund addresses the rising want of accountable investing and permits buyers to learn from investing in corporations that are in a position to keep appropriate ESG scores.
The Scheme will probably be managed by Mrinal Singh, Deputy CIO- Equities and the benchmark is Nifty 100 ESG Index TRI.
The New Fund Offer (NFO) of ICICI Prudential ESG will open on September 21 and can shut on October 05.
Speaking on the launch of the product, Nimesh Shah, MD & CEO, ICICI Prudential AMC stated, “ESG investing is synonymous with sustainable investing. In the approaching years, ESG approach of investing will probably be a brand new regular in India as a lot of the millennial & younger inhabitants in India are extra aware and diligent whereas investing determination. Majority of research highlights that corporations with good ESG scores tick-off a lot of the check-boxes for investing, tends to mitigate Environmental & Social dangers and tends to have stronger money flows, decrease borrowing prices and sturdy returns.”
Shah additional added that ESG targeted corporations present higher development which can translate into higher wealth creation for buyers and will display higher resilience in downturns.
In India, the ESG idea is at a nascent stage and has enormous scope to discover. Whereas globally, Responsible Investing i.e. ESG-based investing has been current for some time, with buyers fortunately accepting this idea as showcased by way of the flows acquired in 2019 (154 USD Billion) versus 2009 (21 USD Billion).
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